UPDATE 1-Canada grain handlers to expand as crops overwhelm system

(Recasts with background on large crops. Adds CWB and Viterra
expansion announcements)

By Rod Nickel

WINNIPEG, Manitoba, April 10 (Reuters) - Three Canadian
grain handlers said this week that they will expand facilities
to handle the country's crops, after a record-smashing harvest
overwhelmed the transportation system.

Viterra, owned by Glencore Xstrata PLC, said on
Thursday it will spend C$100 million ($92 million) to boost
grain shipping through Port Metro Vancouver, while CWB, formerly
known as the Canadian Wheat Board, said it is building a second
Western Canadian grain elevator.

Global commodities trader Cargill Ltd said on
Wednesday that it would expand an elevator site in Manitoba.

The moves come as the country's grain handlers and railways
have struggled to move a record harvest to port, causing a
massive backlog.

Last year's 76-million tonne Western Canadian crop was
larger than expected due to nearly ideal weather during the
growing season. But with seed technology companies developing
crop varieties to produce bigger yields, the industry expects
harvests to trend higher over the long term.

Viterra said it will modernize its Pacific Terminal at the
country's busiest port to increase grain shipping and storage.

"Our goal is to create the most efficient port terminal in
Canada with unprecedented capability for processing a diverse
range of commodities," said Kyle Jeworski, Viterra's chief
executive for North America.
Continued...